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| 1 | The regional policies of the EU now account for about half of the EU's budget, but in the 1960s the figure was much higher. |
 | A) | TRUE |
| B) | FALSE |
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| 2 | Spending on regional policies increased significantly when Spain and Portugal joined the EU. |
| A) | TRUE |
| B) | FALSE |
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| 3 | The 2004 enlargement let in 10 nations which are systematically poorer than the EU15 incumbent nations, so the fraction of the EU budget spend on poor regions was increased substantially. |
| A) | TRUE |
| B) | FALSE |
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| 4 | In 2003, the Cohesion Fund could be spent only in Ireland, Greece, Portugal and Spain. |
| A) | TRUE |
| B) | FALSE |
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| 5 | Most of the structural funds are spent on so called Objective 1 regions since these are the regions dominated by declining industries. |
| A) | TRUE |
| B) | FALSE |
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| 6 | The main criterion for a region to qualify for Objective 2 Spending is: |
| A) | a regional economy marked by a declining sector. |
| B) | a per capita income that is less than 75% of the EU average. |
| C) | a high level of low term unemployment. |
| D) | an important environmental problem. |
|
| 7 | Economic activity in the EU is very concentrated geographically, for example: |
| A) | about 50% of economic activity takes place on just 14% of the land area. |
| B) | about 90% of EU industry is located in Germany. |
| C) | about 80% of economic activity is located in just 10% of the land area. |
| D) | None of the above are true. |
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| 8 | The peripheral regions of the EU suffer from: |
| A) | deforestation |
| B) | excessive investment in agricultural activities. |
| C) | higher than average unemployment, higher than average youth unemployment and higher than average poverty. |
| D) | excessive dependence on world markets. |
|
| 9 | Between the mid 1980s and the end of the 1990s: |
| A) | EU per capita incomes at the national level diverged. |
| B) | EU per capita incomes at the national level converged, but the per capita incomes at the sub-national levels diverged. |
| C) | EU per capita incomes at the national level diverged, but the per capita incomes at the sub-national levels converged. |
| D) | EU per capita income distribution did not change much. |
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| 10 | Indicate the combination of facts that are true:
- (i) European integration has been accompanied by only modest relocation of industry among nations, at least when one lumps all forms of manufacturing together;
- (ii) The little movement that there has been tends to lean in the direction of manufacturing activities having become more geographically dispersed across nations, not less;
- (iii) Most European nations have become more specialised on a sector-by-sector basis;
- (iv) At the subnational level, we see that industry is become more concentrated spatially.
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| A) | Only points (i) and (iii) are true. |
| B) | Points (i) to (iii) are true. |
| C) | Only points (ii) and (iv) are true. |
| D) | All points are true. |
|
| 11 | According to the Heckscher-Ohlin comparative advantage approach, a reduction in trade barriers should: |
| A) | lead big nations to gain industry. |
| B) | lead small nations to gain industry. |
| C) | lead nations to specialise in industries that are intensive dependants on the factors in which the nations are relatively well endowed. |
| D) | None of the above. |
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| 12 | According to the new economic geography approach, a reduction in trade barriers should: |
| A) | lead big nations to gain industry. |
| B) | lead small nations to gain industry. |
| C) | lead nations to specialise in industries that are intensive dependants on the factors in which the nations are relatively well endowed. |
| D) | None of the above. |
The diagram shows the locational equilibrium when there are two nations (North and South) and trade between them is not completely free.
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| 13 | The EE curve is steeper than the 45 degree line because as  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0077111192/117919/ch09q13eq02.GIF','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (0.0K)</a>]]> increases,  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0077111192/117919/ch09q13eq03.GIF','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (0.0K)</a>]]> increases less. This is because is assumed to be immobile. |
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| 14 | The KK curve is steeper than the 45 degree line because of forces; i.e. the tendency of economic activity to concentrate more than proportionally in the large region. |
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| 15 | If trade gets freer, the curve will rotate around the (½,½) point KK. |
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| 16 | If trade gets freer, industry will move to the region. |
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| 17 | If trade gets free enough, the KK curve will be steeper than the EE curve, so all industry will locate to the big region. This is called the outcome. |